The Albanian insurance market grew between 2008-2017 on all segments, both in GWP and in paid claims terms. There is only one exception to this generalized upward trend, that is, the indemnities paid chapter on the property class " fire and allied perils insurance", which dropped 18.04%.

Otherwise, all insurance segments recorded a positive trend throughout the period. In Albania, MTPL remains the "queen class" in the market, accounting for half of the market, around 45-60% of all premiums and indemnities, thus setting the evolution trend of the entire Albanian insurance market.

The life/non-life insurance GWP ratio remained relatively unchanged during the period, with very small fluctuations. Non-life insurance maintained its share of around 90% of all written premiums. Similarly, claims paid for non-life insurance constantly maintained a 94% - 97% share in the total claims expenditure.

Life insurance GWP doubled over this period, from EUR 4.18 million in 2008 to EUR 9.06 million in 2017. Life premiums had an upswing trend between 2008 and 2011, increasing by 70%, followed by a five-year period of stagnation, with minor fluctuations. In the last year, however, life GWP rose again by 25%.

Indemnities paid for life insurance have risen steadily. It is worth mentioning two years of the decade: 2013, when paid indemnities decreased by 50% y-o-y, and 2015 when they have recorded an opposite trend, doubling compared to the value in 2014.

The non-life insurance segment followed a similar trend, with GWP increasing twofold, from EUR 53 million in 2008 to EUR 112 million in 2017, thus keeping the same proportions in the market. In our analysis, a sharp increase in non-life GWP was observed in 2014, when the premiums increased by 41% y-o-y, after a period of stagnation between 2008 and 2013. This 41% increase in non-life premiums in 2014 is reflected in the total market, with 2014 total premiums rising by 36%. Motor classes, especially MTPL, make the largest contribution to the top of the total market, but they are also the most "costly" for insurers, providing for 60-86% of the total sums being paid for claims.

To conclude, the Albanian insurance market has not changed much in the past 10 years, at least in portfolio terms. Since 2008, the MTPL line has strongly influenced the final outcome of the market. Life insurance remains an underdeveloped segment in Albania. Property insurance ("Fire and allied perils") and MTPL are the most important business lines in Albania.

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